US asset management firm Barings will absorb external investment research costs when the implementation of Mifid II will be effective on 3 January 2018.
The decision announced by the firm will cover all its global equity, multi-asset and fixed income portfolios. Other major managers have previously said they would absorb the cost of research ahead of Mifid III. The non-exhaustive list includes BlackRock, BNP Paribas Asset Management, Union Investment, AXA Investment Managers, Franklin Templeton Investments, Deutsche Asset Management, Allianz GI, JOHCM, Unigestion, Kempen, Flossbach von Storch AG, Hermes, Aberdeen Standard Investments and BlueBay Asset Management.
“Fundamental research is the foundation of successful active management, and over the past several years Barings has made significant investments in expanding its own comprehensive in-house research capabilities, thereby reducing our third-party research costs,” said Ghadir Abu Leil-Cooper, global head of Equities.
“While we will continue to utilise select external research where it benefits our clients, the decision to absorb those costs is a logical step in strengthening our partnerships with our clients,” he added.
Tom Finke, Barings’ chairman and CEO, commented: “Barings possesses exceptional breadth and depth of investment research talent, which serves as the underpinning of a robust global investment platform designed to serve our clients’ needs. Our decision to absorb the costs for third-party research reflects our overarching goal of advancing partnership and putting our clients’ interests first.”
Barings had $288bn (€239.9bn) of assets under management as of 30 June 2017.